Health Savings Account (HSA)

The IRS sets limits for how much you can contribute to a Health Savings Account. See the current contribution limits.

It’s easy to invest with an HSA in just 3 steps:

o   Open an HSA with Quest.

o   Fund your account by making a contribution.

o   Use the Investment Hub in the Client Portal to self-direct your investment. 

• Distributions are tax free when used to pay for qualified medical expenses
• Qualified medical expenses are those expenses that would generally qualify for the medical and dental expenses tax deduction.
• Expenses incurred before you establish your HSA are not qualified medical expenses
• Unqualified distributions will be subject to income tax and may be subject to an additional 20% penalty.

Health Savings Accounts and Individual Retirement Accounts are both tax advantaged accounts. HSA distributions are designed to help you pay for qualified medical expenses tax free, whereas distributions from an IRA can be used for more general expenses in retirement once you have reached the age 59-1/2.

Buying real estate with an IRA or HSA can be done. You just need to find a custodian that will hold non-traditional or “alternative” investments in self-directed accounts.

You first need to find a custodian that will hold non-traditional or “alternative” investments and establish an IRA with them. You will then locate the real estate you want to purchase, and typically, your custodian will require you to sign some internal forms. After making sure the contract is in the name of the IRA, your custodian will purchase the property for you on behalf of your IRA.